Switch to:
McCormick & Company Inc (NYSE:MKC)
Days Inventory
102.06 (As of Aug. 2014)

McCormick & Company Inc's average inventory for the three months ended in Aug. 2014 was $696 Mil. McCormick & Company Inc's cost of goods sold for the three months ended in Aug. 2014 was $623 Mil. Hence, McCormick & Company Inc's days inventory for the three months ended in Aug. 2014 was 102.06.

McCormick & Company Inc's days inventory increased from Aug. 2013 (93.84) to Aug. 2014 (102.06). It might indicate that McCormick & Company Inc's sales slowed down.

Inventory can be measured by Days Sales of Inventory (DSI). McCormick & Company Inc's days sales of inventory (DSI) for the three months ended in Aug. 2014 was 60.94.

Inventory turnover measures how fast the company turns over its inventory within a year. McCormick & Company Inc's inventory turnover for the three months ended in Aug. 2014 was 0.89.

Inventory to revenue ratio determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue. McCormick & Company Inc's inventory to revenue ratio for the three months ended in Aug. 2014 was 0.67.


Definition

Days Inventory indicates the number of days of goods in sales that a company has in the inventory.

McCormick & Company Inc's Days Inventory for the fiscal year that ended in Nov. 2013 is calculated as

Days Inventory (A: Nov. 2013 )
=Average Inventory / COGS*Days in Period
=( (Inventory (A: Nov. 2012 ) + Inventory (A: Nov. 2013 )) / 2 ) / COGS (A: Nov. 2013 )*Days in Period
=( (615 + 676.9) / 2 ) / 2457.6*365
=645.95 / 2457.6*365
=95.94

McCormick & Company Inc's Days Inventory for the quarter that ended in Aug. 2014 is calculated as:

Days Inventory (Q: Aug. 2014 )
=Average Inventory / COGS*Days in Period
=( (Inventory (Q: May. 2014 ) + Inventory (Q: Aug. 2014 )) / 2 ) / COGS (Q: Aug. 2014 )*Days in Period
=( (687.3 + 705.6) / 2 ) / 622.7*365 / 4
=696.45 / 622.7*365 / 4
=102.06

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.


Explanation

An increase of Days Inventory may indicate the company's sales slowed.

1. Inventory can be measured by Days Sales of Inventory (DSI).

McCormick & Company Inc's Days Sales of Inventory for the three months ended in Aug. 2014 is calculated as

Days Sales of Inventory (DSI)=Average Inventory/Revenue*Days in Period
=696.45/1042.8*365 / 4
=60.94

2. Inventory Turnover measures how fast the company turns over its inventory within a year.

McCormick & Company Inc's Inventory Turnover for the three months ended in Aug. 2014 is calculated as

3. Inventory to Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue.

McCormick & Company Inc's Inventory to Revenue for the three months ended in Aug. 2014 is calculated as

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.


Be Aware

A lot of business are seasonable. It makes more sense to compare Days Inventory from the same period in the previous year instead of from the previous quarter.


Related Terms

Cost of Goods Sold, Inventory, Revenue, Inventory Turnover, Inventory to Revenue


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

McCormick & Company Inc Annual Data

Nov04Nov05Nov06Nov07Nov08Nov09Nov10Nov11Nov12Nov13
DaysInventory 85.7081.4585.4288.4784.0086.6087.8291.5693.5795.94

McCormick & Company Inc Quarterly Data

May12Aug12Nov12Feb13May13Aug13Nov13Feb14May14Aug14
DaysInventory 95.8696.5185.5397.3191.3693.8490.03103.08100.69102.06
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK